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Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity Joel de Paris, Incorporated Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 130,000 208,000 Beginning Balance $ 125,000 331,000 578,000 876,000 397,000 253,000 $ 2,560,000 $ 385,000 951,000 1,224,000 $ 2,560,000 $ 5,211,000 4,533,570 677,430 338,000 $ 339,430 Ending Balance $ 131,000 483,000 485,000 851,000 430,000 251,000 $ 2,631,000 $ 340,000 951,000 1,340,000 $ 2,631,000 The company paid dividends of $223,430 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return of 15%. Required: 1. Compute the company's average operating assets for last year. 2. Compute the company's margin, turnover, and return on investment (ROI) for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year?

Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity Joel de Paris, Incorporated Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 130,000 208,000 Beginning Balance $ 125,000 331,000 578,000 876,000 397,000 253,000 $ 2,560,000 $ 385,000 951,000 1,224,000 $ 2,560,000 $ 5,211,000 4,533,570 677,430 338,000 $ 339,430 Ending Balance $ 131,000 483,000 485,000 851,000 430,000 251,000 $ 2,631,000 $ 340,000 951,000 1,340,000 $ 2,631,000 The company paid dividends of $223,430 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return of 15%. Required: 1. Compute the company's average operating assets for last year. 2. Compute the company's margin, turnover, and return on investment (ROI) for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year?

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 20BEA: The income statement, statement of retained earnings, and balance sheet for Somerville Company are...
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Subject : Accounting

 

1. Average operating assets        
2. Margin         %
2. Turnover        
2. ROI         %
3. Residual income     

 

 

Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity Joel de Paris, Incorporated Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 130,000 208,000 Beginning Balance 876,000 397,000 253,000 $ 2,560,000 $ 125,000 331,000 578,000 $ 5,211,000 4,533,570 677,430 338,000 $ 339,430 Ending Balance $ 385,000 $ 340,000 951,000 1,224,000 951,000 1,340,000 $ 2,560,000 $ 2,631,000 $ 131,000 483,000 485,000 851,000 430,000 251,000 $ 2,631,000 The company paid dividends of $223,430 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return of 15%. Required: 1. Compute the company's average operating assets for last year. 2. Compute the company's margin, turnover, and return on investment (ROI) for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year?
Transcribed Image Text:Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity Joel de Paris, Incorporated Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 130,000 208,000 Beginning Balance 876,000 397,000 253,000 $ 2,560,000 $ 125,000 331,000 578,000 $ 5,211,000 4,533,570 677,430 338,000 $ 339,430 Ending Balance $ 385,000 $ 340,000 951,000 1,224,000 951,000 1,340,000 $ 2,560,000 $ 2,631,000 $ 131,000 483,000 485,000 851,000 430,000 251,000 $ 2,631,000 The company paid dividends of $223,430 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return of 15%. Required: 1. Compute the company's average operating assets for last year. 2. Compute the company's margin, turnover, and return on investment (ROI) for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year?
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